Governor Gavin Newsom has officially endorsed Proposition 42, a move that places him in direct opposition to the proposed billionaire tax known as Proposition 40, Cal Matters reports. This endorsement, announced on Friday, effectively works to cancel out the proposed wealth tax by prohibiting retroactive taxes on assets for any billionaire living in California on January 1, 2026.
Beyond just blocking the current proposal, Proposition 42 goes further by banning any new taxes on personal property, including pensions, 401K accounts, business holdings, art collections, and various other financial assets. The endorsement is a significant development that puts the governor at odds with his own Democratic Party and several labor unions.
